You are considering making a action filman. The movie is expected to cost $10.6 million up front and take a year to produce. After that, it is expected to make $4.5 million in the year it is released and $1.1 million for the following four years. What is the payback period of this investment? If you require a payback period of two years, will you make the film? Does the film have positive NPV if the cost of capital is 10.2 %?

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Part 1

What is the payback period of this investment?(Round to two decimal places.)